HomeMy WebLinkAboutItem 3 - Staff Rept - Amendment to Development AgreementC H U L A VISTA
Item: 3
Meeting Date: 07/23/14
ITEM TITLE: Public Hearing: PCM- 14 -08; Consideration of the First Amendment to
the Restated and Amended Pre - Annexation Development Agreement by
and between the Otay Land Company, LLC and the City of Chula Vista
for properties within the Otay Ranch Planned Community.
Resolution: PCM- 14 -08; of the Planning Commission of the City of
Chula Vista recommending that the City Council adopt an Ordinance
approving the First Amendment to the Restated and Amended Pre -
Annexation Development Agreement between Otay Land Company, LLC,
and the City of Chula Vista.
SUBMITTED BY: Scott Donaghe, Principal Planner
REVIEWED BY: Kelly Broughton, FASLA, Development Services Director
INTRODUCTION
The applicant, the Otay Land Company, filed an application in July 2009 for a variety of
entitlements including an amendment to their existing Restated and Amended Pre - Annexation
Development Agreement ( "Agreement "). Amendments to the Agreement were part of the
entitlements contemplated in Exhibit C of the Land Offer Agreement (LOA) between the City of
Chula Vista and the Otay Land Company, LLC that was approved by Council on April 7, 2008
(See Attachment 1). Action on this item will resolve all entitlements stipulated in this LOA.
BACKGROUND
In 1997, the City of Chula Vista entered into a Restated and Amended Pre - Annexation
Development Agreement with Otay Ranch, L.P., the property owner at that time. The agreement
provided certain assurances to the City, while providing the owner with certainty in the planning
process for the Otay Ranch (See Attachment 3). The original term of the agreement was 20
years. With the breakup in ownership of properties in the Otay Ranch beginning in the late
1990's, Otay Land Company, LLC purchased several large parcels that were subject to the
agreement. Since development agreements "run with the land ", the Otay Land Company (OLC)
became a party to the agreement for their portions of property within the original agreement.
On April 15, 2008, the City of Chula Vista entered into a Land Offer Agreement (LOA) with
OLC that would allow the City of Chula Vista to accept Irrevocable Offers of Dedication (IODs)
for 50 acres of developable University /Regional Technology Park land if certain entitlements are
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approved within the agreed upon timeframes. These entitlements, in the form of Sectional
Planning Area (SPA) Plans and Tentative Maps (TMs) for OLC's Villages 8 West and 9 were
approved in December 2013 and June 2014, respectively.
Exhibit C of the LOA also stipulated certain amendments to the Development Agreement that
needed to be approved in order to assume the benefits described above. These amendments are
presented for action in this report.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the
California Environmental Quality Act (CEQA) and has determined that the proposed project was
adequately covered in previously adopted Final Second Tier Environmental Impacts Reports
(EIR -10 -03 & EIR- 10 -04). Thus, no further environmental review or documentation is
necessary.
RECOMMENDATION
That the Planning Commission:
Adopt Resolution PCM -14 -08 recommending that the City Council adopt an Ordinance
approving the First Amendment to the Restated and Amended Pre - Annexation
Development Agreement between Otay Land Company, LLC, and the City of Chula
Vista.
DISCUSSION
As directed by the approved LOA, the proposed amendments (See Attachment 2) to the previous
development agreement are minor in nature and would make the following six required changes:
• Increase the term of the agreement for 20 years;
• Increase the period of time that Tentative Maps and Permits are valid for a period of time
equal to the term of this agreement;
• Clarify the applicability of the City's Growth Management Ordinance on the project;
• Stipulate that the parties agree to the modifications to the Existing Project Approvals that
were approved by the City in the form of the Villages 8 West and 9 SPA Plans and
Tentative Maps;
• Clarify Section 7.5 as it relates to reimbursement for certain facilities; and,
• Clarify that all of the other terms and provisions of the development agreement shall
remain unmodified and in full force and effect.
DECISION -MAKER CONFLICTS:
Staff has reviewed the property holdings of the Planning Commissioners and has found no
property holdings within 500 feet of the boundaries of the property that is subject to this action.
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Staff is not independently aware, nor has staff been informed by any Planning Commission
member, of any other fact that may constitute a basis for a decision maker conflict of interest in
this matter.
RELATIONSHIP TO THE CITY'S STRATEGIC PLAN
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality,
Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This
project supports the Economic Vitality goal, particularly City Initiative 2.1.3 (Promote and
support development of quality master - planned communities) as it relates to development within
portions of the Otay Ranch. These amendments will also allow the City the opportunity to accept
lands for the University Park and Innovation District, as agreed to in the LOA between the City
and the Otay Land Company, which will provide access to higher education for the citizens of
Chula Vista and south bay.
CONCLUSION
The proposed amendments to the Restated and Amended Pre - Annexation Development
Agreement will update and clarify the agreement by increasing the term of the agreement and
providing certainty to the City of Chula Vista and the Otay Land Company consistent with the
requirement of the approved LOA.
CURRENT YEAR FISCAL IMPACT
The cost for processing the Amendment to the Restated and Amended Pre - Annexation
Development Agreement was funded by a developer deposit account, and therefore, there is no
Fiscal Impact to the General Fund.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts associated with the approval of this amendment
Attachments: 1. Exhibit C from the April 2008 Land Offer Agreement between the City of
Chula Vista and the Otay Land Company, LLC.
2. Proposed First Amendment to Restated and Amended Pre - Annexation
Development Agreement
3. Restated and Amended Pre - Annexation Development Agreement with
Otay Ranch, L.P. dated May 12, 1997.
Prepared by: Scott Donaghe, Principal Planner, Development Services Department